Arab world must open up if it wants to be understood in the West

Gunter Mulack
Updated 11 April 2017
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Arab world must open up if it wants to be understood in the West

The West does not really understand the Middle East, and will struggle to do so until the Arab world becomes more open and accepts a greater degree of pluralism in its social and cultural life, according to a respected German diplomat with nearly four decades of experience in the region.
Dr. Gunter Mulack, who served as senior diplomat or ambassador in many Middle East countries until his retirement, said: “I don’t believe the West understands the region, and is often not interested in developing a really deep understanding of it. The overall impression in the rest of the world is negative.
“But it is less negative about those parts of the region that Europe and America can visit as tourists, like Oman and the UAE for example. Tourism has brought a good impression of those countries because they are beautiful or historic. Germans loved Yemen when it was possible to go there.”
“The Middle East should learn from this that it has to open up and accept pluralism if it wants to change perceptions in the rest of the world,” he added.
Mulack is visiting Saudi Arabia as a speaker at the Top CEO Conference, the public sessions of which open today at the King Abdullah Economic City near Jeddah. He is set to participate in an Arab News panel on the “Middle East’s perception problem.”
Mulack retired from the German diplomatic service in 2008 after posts in Lebanon, Jordan, Kuwait, Bahrain, Syria and Morocco, and is now a director at the Berlin-based German Orient Institute, which is aimed at promoting greater knowledge of the region in Europe and the US.
“I first came to Jeddah in 1972, and it was a very different place. It was always a trading center, but it was just the old town then, there was hardly any development. The religious police would smash shopkeepers’ goods if they did not close for prayer,” he recalled.
Mulack applauded the moves by the government to transform the country’s economic and social system embodied in the Vision 2030 strategy, but warned it would not be an easy task.
“It is not the first time there has been an attempt to change Saudi society for the good, but this time they are taking it seriously. The Deputy Crown Prince Mohammed bin Salman is young and ambitious, and he wants to change the attitude of a rentier state that lives off oil income into a real economy with real industry, with less reliance on public sector jobs.
“But to bring young Saudis into the private sector is difficult because you have to motivate them, and that is difficult in a society where the government has provided many jobs in the past,” he added.
He said it might take a full generation to bring about lasting change, and that the 2030 timeframe might be difficult to meet.
On two crucial issues — education and the role of women — he thought the plan faces challenges. “The quality of education, in an open minded and creative way, is important. And women really are the soft power of the country who are yet to be fully realized,” he said.

Views of the Arab world
Growing up in East Berlin, Mulack was first attracted to the Middle East through the works of author Karl May, who wrote novels set in the Arab world, as well as the American west. “He painted a very positive picture of the region, of the noble Arab defending Islam, and it was my first inspiration,” he said.
He studied law, but learned Arabic, Turkish and Farsi partly, he said, to impress an Arabic-speaking girlfriend he had at the time. “I went to Morocco and it was just so oriental, I had a very romantic view of the place. I learned later of course that the reality was not always in line with that image,” he said.

I believe the Iranians are aggressive and expansionist. They have troops on the ground through the ‘Shia foreign legion’ of recruits from Pakistan and Afghanistan who are fighting in Syria, and they are financing Bashar Al-Assad. 

— Gunter Mulack


He learned the diplomatic trade in Kuwait in the 1970s, when the oil price began to rise sharply, and later in Jordan where he was responsible for German relations with the occupied West Bank and Gaza.
“Then it seemed as though there might be hope that here could be a two-state solution in Palestine, but that has faded now, and the region has other problems — chaos, civil war and violence in some parts, and the split between Sunnis and Shiites, which was not so obvious back then.”
He said that he could understand the resentments of Sunni Muslims who saw Iranian power expand along the “crescent” from Iran, through Iraq and Syria, to Lebanon.
“I believe the Iranians are aggressive and expansionist. They have troops on the ground through the ‘Shia foreign legion’ of recruits from Pakistan and Afghanistan who are fighting in Syria, and they are financing Bashar Assad.
“I do not believe the conflict in Yemen started as an Iranian fifth column, but as an internal conflict. Then the Houthis started to get assistance from Iran and it became part of the ‘great game’ rivalry between Saudi Arabia and Iran,” he added.
Mulack said that the recent attack on Syrian military positions ordered by President Donald Trump was a positive act by the US leader. “It is the only language Assad understands. It tells him that he cannot cross red lines, even if it was an emotional decision when he (Trump) saw pictures of dead children.”
He said that the West and Russia did not really have a solution to the current problems of the Middle East, and that it needed the intervention of a “facilitator” to try to bring an end to conflicts, though he added that Oman could play a bigger role in the region.
“Many say that the Arabs only understand the language of power, but I don’t agree. The states of the Middle East have got to develop civil societies and education systems. They have to empower women. Then maybe they can deal with the problems here,” he said.
“Saudi Arabia is right to follow the 2030 plan because you have to have a real state, with real economy and real industry, to deal with the long term problems,” he added.

BIOGRAPHY

• Dr. Gunter Mulack is a retired German ambassador
and at present the executive director of the German
Orient Institute in Berlin.
• He entered the German diplomatic service in 1971 after
studying law and oriental languages as well as
Middle Eastern regional studies at the universities of
Marburg, Freiburg and Goettingen in Germany.
• He graduated as a lawyer and passed his state
examination in 1968. From 1969-1970 he did
postgraduate studies at the University of California
Berkeley, Boalt Hall Law school — he graduated in 1970.
• In 1971 after having been research associate at the
Institute of International Law at Goettingen University
he received his Ph.D. in International law.
• As a diplomat he served mostly in the Arab world.
He graduated with a diploma in Arabic from MECAS
in Lebanon, serving in Cairo, Amman, Beirut, Kuwait
and other postings.
• He was German Ambassador to Bahrain, Kuwait and
Syria and Consul General in Casablanca.
• In May 2002 he was appointed as the first German
Commissioner for Dialogue with the Muslim world
and served until 2005 in this capacity visiting almost
all Muslim countries. From July 2005 to September
2008 he served as German Ambassador in Pakistan.
In 2009 he was political adviser to the EU Chief
observer for the Afghanistan presidential elections.
• After his retirement in September 2008, he was
appointed executive director of the German Orient
Institute in Berlin. He is member of the board of the
German Orient Foundation and of several think tanks.


Saudia orders additional 105 aircraft from Airbus

Updated 10 sec ago
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Saudia orders additional 105 aircraft from Airbus

RIYADH: Saudia Group and flyadeal have signed a firm order for an additional 105 A320neo family aircraft, it has been announced at the Future Aviation Forum in Riyadh.

The order comprises 12 A320neo and 93 A321neo aircraft, and increases Saudia Group’s Airbus aircraft order backlog to 144 A320neo family aircraft.

The agreement was announced in the presence of Minister of Transport and Logistic Services Saleh bin Nasser AI-Jasser, Director General of Saudia Group Ibrahim Al-Omar, and Benoît de Saint-Exupéry, executive vice president sales of the commercial aircraft business.


Saudi-Chinese financial ties to strengthen as top officials meet in Beijing

Updated 20 May 2024
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Saudi-Chinese financial ties to strengthen as top officials meet in Beijing

RIYADH: Saudi and Chinese top officials are holding joint meetings in Beijing focused on fostering international economic growth.

The sessions, which are slated to take place from May 20 - 21 in Beijing, include the Kingdom’s Minister of Finance Mohammed Al-Jadaan, the newly appointed Vice Minister of Finance Abdulmuhsen Al-Khalaf, along with officials from the Ministry of Finance, the National Center for Privatization, and the Saudi Central Bank.

Officials from the Capital Market Authority, Zakat, Tax and Customs Authority as well as the National Development Fund, are also part of the delegation, as well as representatives from the Saudi Fund for Development, and the National Infrastructure Fund.

In a post on his X account, Al-Jadaan said: “Today (May 20), as part of my visit to China, I met with the Chinese Minister of Finance, Lan Fo’an. We discussed ways to enhance the finance, trade and investment cooperation between Saudi Arabia and China to advance prosperity and growth for the global economy.”

The Saudi finance minister and his Beijing counterpart co-chaired the third meeting of the Financial Sub-Committee for the High-level Chinese-Saudi Joint Committee, where Al-Jadaan emphasized that China is a key partner in the Kingdom’s transformation under Vision 2030, according to a statement by the Saudi Finance Ministry.

The release added that the minister would participate in a roundtable discussion organized by the NCP in cooperation with the Industrial and Commercial Bank of China.

Al-Jadaan will also speak with various Chinese ministers, officials, and investors, focusing on recent economic and financial developments, shared interests, and investment prospects in Saudi Arabia, aligning with the Kingdom’s Vision 2030 goals.

Meanwhile, Al-Khalaf and the Chinese Vice Minister of Finance, Liao Min, will co-chair a roundtable meeting hosted by the Chinese Ministry of Finance and organized by the China Development Bank and the China Investment Corp.

Al-Jadaan’s visit to the Asian powerhouse comes after he used a panel discussion at the Qatar Economic Forum on May 14 to urge financial planners to optimize their strategies to curb “economic leakage” and prevent resources or funds from being wasted.

Calling for the adoption of prudent fiscal policies, the minister said at the event that spending during a time of global inflation results in increased project costs, which he believes further fuels inflation and “overheats” the economy.

Diplomatic and economic ties between Saudi Arabia and China have been strengthening in recent years, and in November the Kingdom’s central bank, also known as SAMA, and the People’s Bank of China signed a local currency swap agreement worth $6.93 billion.

The agreement will last three years, but China’s central bank said at the time it can be extended after two years by mutual agreement.


Saudi Arabia’s first quantum computer on its way after Aramco, Pascal deal

Updated 20 May 2024
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Saudi Arabia’s first quantum computer on its way after Aramco, Pascal deal

RIYADH: Saudi Arabia's first quantum computer is set to be installed after energy giant Aracmo signed an agreement with computing firm Pasqal.

Under the deal, the French company will install, maintain and operate a 200-qubit device, scheduled for deployment in the second half of next year, according to a press statement. 

A quantum computer uses qubits to run multidimensional algorithms, and these machines are capable of solving complex problems faster than traditional computers.

Ahmad Al-Khowaiter, executive vice president of technology and innovation at Aramco, said the deal with Pasqal is expected to bring high-performance information processing to Saudi Arabia. 

“In a rapidly evolving digital landscape, we believe it is crucial to seize opportunities presented by new, impactful technologies and we aim to pioneer the use of quantum computing in the energy sector,” said Al-Khowaiter. 

He added: “Our agreement with Pasqal allows us to harness the expertise of a leading player in this field as we continue to build state-of-the-art solutions into our business. It is also further evidence of our contribution to the growth of the digital economy in Saudi Arabia.” 

The quantum computer that will be installed in Saudi Arabia will initially use an approach called “analog mode.”

Within the following year, the system will be upgraded to a more advanced hybrid “analog-digital mode,” which is more powerful and able to resolve more complex tasks, the statement added. 

The agreement follows a memorandum of understanding signed between Aramco and Pasqal in 2022 to collaborate on quantum computing capabilities and their applications in the energy sector.

Georges-Olivier Reymond, CEO and co-founder of Pasqal, noted that the agreement would see the commercial adoption of quantum computers in the Kingdom. 

“This isn’t just any quantum computer; it will be the most powerful tool deployed for industrial usages, unlocking a new era of innovation for businesses and society,” said Reymond. 

Earlier this month, Aramco also signed three MoUs with US firms, including Aeroseal, Spiritus, and Rondo, to accelerate the development of potential lower-carbon solutions.

In May, Aramco also announced its financial results for the first three months of this year. 

The company revealed that its net profit reached $27.27 billion in the first quarter, representing a rise of 2.04 percent compared to the last quarter of 2023.


Closing Bell: Saudi main index edges down to close at 12,198

Updated 19 May 2024
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Closing Bell: Saudi main index edges down to close at 12,198

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday losing 0.06 points to close at 12,198.38.  

The total trading turnover of the benchmark index was SR4.42 billion ($1.18 billion) as 60 stocks advanced, while 160 retreated.  

On the other hand, Nomu, the parallel market, rose 577.98 points, or 2.18 percent, to close at 27,062.01. This comes as 28 stocks advanced while as many as 33 retreated.

Meanwhile, the MSCI Tadawul Index slipped 1.45 points, or 0.09 percent, to close at 1,528.60.

The best-performing stock of the day was Lazurde Co. for Jewelry. The company’s share price surged 10.00 percent to SR16.06. 

Other top performers included Middle East Specialized Cables Co. as well as Aldrees Petroleum and Transport Services Co.

The worst performer was Zahrat Al Waha for Trading Co., whose share price dropped by 10 percent to SR45.45.

Makkah Construction and Development Co. as well as Jazan Development and Investment Co also performed poorly.

On the announcements front, Kingdom Holding Co. announced its interim financial results for the period ending March 31. 

According to a Tadawul statement, the company’s net profit hit SR196 million in the first quarter of 2024, reflecting a 14.6 percent surge when compared to the similar quarter last year. 

The increase is mainly due to a rise in the sale of investment property, a surge in the share of results from equity-accounted investees, and a decrease in financial charges. 

It is also linked to an increase in finance income as well as a drop in withholding and income tax.

Moreover, Dar Alarkan Real Estate Development Co. announced its interim financial results for the first three months of 2024. 

A bourse filing revealed that the firm’s net profit reached SR153.5 million by the period ending March 31, up 30.57 percent from the corresponding period in 2023. This surge is primarily attributed to higher property sales. 

Furthermore, Middle East Paper Co. announced its interim financial results for the year’s first quarter. 

According to a Tadawul statement, the company recorded a net loss of SR18 million in the first three months of 2024, compared to a net loss of SR7 million in the same period of the previous year.

This is mainly owed to reduced gross profit, a jump in general and administrative dues, and increased finance and zakat expenses. 

Red Sea International Co. also announced its interim financial results for the period ending on March 31. 

A bourse filing revealed that the firm’s net profit stood at SR13.3 million at the end of the first quarter of 2024, compared to a net loss of SR19.5 million recorded in the same quarter a year ago. 

This is mainly the result of the strategic business transformation, which included acquiring 51 percent of First Fix and effectively executing and delivering projects.

Meanwhile, Saudi Manpower Solutions Co., announced the completion of the institutional book-building process and the determination of the final offer price for its initial public offering on the main market of the Saudi Exchange.

According to a company statement, the final offer price has been set at SR7.5 per share, with a market capitalization of SR3 billion at listing. The price range for the offering was set at SR7 to SR7.5.   

The institutional book-building process generated an order book of around SR115 billion and was 128 times oversubscribed, indicating strong investor demand.   


Baheej unveils waterfront development project in Yanbu 

Updated 19 May 2024
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Baheej unveils waterfront development project in Yanbu 

RIYADH: Saudi Arabia’s tourism sector continues to expand, with Baheej Tourism Development Co. unveiling a new waterfront development project in Yanbu. 

This joint venture between ASFAR, a Saudi tourism investment company owned by the Public Investment Fund, and the Tamimi-AWN Alliance, aims to develop the waterfront area of the Royal Commission at Yanbu. 

The initial project will cover 32,000 sq. m. and feature three leisure assets: a beach, a tourist activation center, and a hotel. It is set for complete unveiling in 2027. 

A fourth component is scheduled to be announced at a later date. 

According to a release, each aspect of the project aims to provide memorable and sustainable tourism experiences. 

Visitors will soon have the opportunity to explore Yanbu, a city with a rich history dating back to the 16th century, renowned for its architectural heritage and sandy beaches. 

Baheej envisions Yanbu as an iconic location that showcases Saudi Arabia’s culture, history, and natural beauty, providing a unique destination to tourists. 

Nora Al-Tamimi, CEO of Baheej, outlines the project’s development in three phases, emphasizing community engagement, sustainability, and minimal environmental impact.  

Al-Tamimi said: “We believe that destinations are not just built but discovered, and Baheej’s commitment lies in uncovering Saudi Arabia’s hidden gems. Our strategic collaborations are aimed at curating unparalleled experiences that showcase Saudi Arabia’s rich culture, history, and natural wonders.”  

She added: “Yanbu City’s contemporary infrastructure, captivating environment, and attractive coastal landscapes make it an exceptional gateway to the Red Sea Riviera. We anticipate the complete unveiling of our destination and its components by the end of 2027.”   

By analyzing risks and investment opportunities, the project aims to position Yanbu as a locally and internationally sought-after tourist destination, explained Al-Tamimi. 

Baheej’s role will involve integrating local culture and promoting protection of the planet, enhancing Yanbu’s appeal and supporting regional development. 

This approach aims to transform Yanbu’s hospitality sector, blending community heritage with environmental stewardship. 

Established in 2023, Baheej aims to create accessible tourism experiences that meet international standards while remaining contextual and sustainable. 

These initiatives are part of a broader strategy to transform Saudi towns into thriving, eco-friendly destinations. 

Baheej also plans to announce additional projects in other cities by the end of 2024.